Masraf Al Rayan has reported an 8% growth in its net profit to QR1.52bn in 2012.

The bank is also contemplating QR1bn budget for acquisitions, including “strategic” stake in a commercial bank in Libya, its spokesman said after the board meeting yesterday.

The Shariah-principled lender’s board has suggested a 10% cash dividend (QR1 per share) to be approved by the shareholders at the annual ordinary general assembly scheduled on February 18, after obtaining approval from the Qatar Central Bank.

Total assets grew 12% to QR61.63bn with financing portfolio surging 23% to QR42.77bn; while customer deposits increased 36% to QR45.01bn.

Total shareholders’ equity reached QR9.73bn, up by 13% from the previous year. Also, the book value per share reached QR12.86 and the earning-per-share was QR2.01.

The board decided to seek shareholders approval through an extraordinary general assembly (to be held on the same day) on acquiring a “strategic” share of a commercial bank in Libya through capital increase of the targeted bank, subject to the positive indication of investment based on the result of the “financial and legal due diligence now in progress” and subject to the approval of the official authorities in both countries, the spokesman said.

Through the extraordinary general assembly, the bank is also seeking approval to empower the board to take decisions concerning urgent business/company acquisitions “up to a total cost of QR1bn” for two years from the date of the approval, and subject to informing the general assembly on its following meeting with any acquisition which has been executed according to the shareholders’ resolution.

The board also discussed several issues related to the acquisition of equity in different companies, including on the steps currently under way to complete the acquisition of a “significant” equity of the Islamic Bank of Britain (IBB).

Masraf Al Rayan had last year announced that it would acquire a 70% stake in IBB, majority owned by International Islamic, another Shariah-based lender of Qatar. IBB is trying to revive its business after struggling to turn a profit since its inception in 2004; it reported a loss of $14.3mn in 2011.